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Hyperscaler Capex Snowballs Toward $700B as Firms Stage AI Builds

Moody’s forecasts that the six largest U.S. hyperscalers will spend about $700 billion on capital expenditures in 2026, roughly six times the 2022 level. The spending surge is driven by exploding demand for AI compute capacity to train models and support inferencing. To mitigate risk, firms such as Microsoft, AWS, Meta, Alphabet, Oracle and CoreWeave are staging data‑center builds and linking them to contracted demand. Analysts warn that the heavy outlays are straining free cash flow and increasing debt, with capex expected to climb to $820 billion in 2027 and potentially exceed $1 trillion by 2030.